What type of funds are structured and sold as mutual funds but manage futures?

Commodity funds are designed specifically to invest in commodities or futures contracts related to commodities, such as oil, gold, or agricultural products. While these funds are structured similarly to mutual funds, they differentiate themselves by focusing specifically on trading futures contracts. This approach allows investors to gain exposure to price movements in physical goods without having to handle the commodities themselves.

The distinguishing feature of commodity funds is their investment strategy, which utilizes futures contracts to hedge risks or speculate on future price changes. This structure provides the liquidity and diversification characteristic of mutual funds while enabling the fund to capitalize on the unique characteristics of the commodity markets.

In contrast, hedge funds often employ a wider range of strategies, including leverage, short selling, and derivatives, but they do not specifically focus on the commodities market. Private equity funds typically invest in private companies or buyouts and do not engage in futures trading. Closed-end funds, while similar to mutual funds, represent a different type of investment structure and do not necessarily focus on commodities or futures. Thus, the focus on commodities and futures trading makes commodity funds the correct choice.